On a recent day, the September2016 S&P Index futures contract (i.e., the S&P contract which expires in September) closed at 2000, down 40 points on the day. The value of the contract is set at 250 the index.

1.How much value did each contract lose that day? Show your work.

2.When you bought the contract, you had to put up initial margin of $25,000. The maintenance margin is $12,500. At what contract price will you get a margin call? Explain.